Hong Kong-based life insurance company AIA Group has outbid other insurers and investment funds for buying MediCard Philippines and is now in advanced negotiations for a deal, reported Bloomberg citing sources.      

The insurance giant is now reportedly working with MediCard on the transaction details and is expected to seal the deal in the coming weeks.

If finalised, the Philippine-based firm is likely to be valued at over $350m, added the sources.

Through the acquisition, AIA intends to expand its footprint in Southeast Asia.

However, the sources said as no final decision has been made yet “talks could still fall apart”.

There was no official confirmation by AIA and MediCard representatives in this regard.

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AIA offers life and general insurance services in the Philippines.

As Covid-induced lockdowns hit insurance sales, AIA registered a 15% fall in new business value in the first half of this year.

The company also saw a 9% drop in shares in Hong Kong, bringing its value at about $108.5bn.

On the other hand, profitability at new business led to positive growth in June this year.

As per MediCard website, the company was founded in 1986 and is the only health maintenance firm in the Philippines founded and managed by doctors.

The company caters to not only individuals and families, but also covers local and multinational corporations.

MediCard has over one million members and nearly 54,000 accredited doctors across 1,000 hospitals and clinics in the country. In May this year, AIA subsidiary AIA China obtained the approval of the China Banking and Insurance Regulatory Commission (CBIRC) to set up a new branch in China’s Henan province.